The AUD Still Has Some Good Upside Potential
Rowan Crosby • 1 min read
It has been a wild ride for the AUD over the last few months. Not too long ago we were trading around the 80 cent mark. From there we basically nosedived to 75 cents, before rebounding all the back to current levels.
What is for sure though is that when a trend starts it is hard to stop. Despite what the fundamentals might be telling us. There is no better example than the USD, who by all rights should be appreciating, but the trend is down and it is staying down.
With that in mind, we are obliged to stick with the uptrend in the AUD/USD. Overhead resistance doesn’t appear to be a factor until we hit 0.7887. 0.7820 is a good level to look at buying if you want to keep this trend going. It was a resistance turned support level and we have been holding up in the short-term.
I would be shocked to see us rally back to the 80 cent level as there are so many fundamental reasons why the Aussie shouldn’t be trading this high. However, as we said, you can’t fight the trend.
As it happens we have a long forex signal on the Aussie.